Sugar mills pay 52 per cent of fair remunerative price to farmers

Sugar mills crushing cane this season have paid Rs 2,170 crore or 52 per cent of the total Fair and Remunerative Price (FRP) of Rs 4,148 crore payable to farmers. Farmers’ organisations have alleged that many sugar mills have failed to keep their promise to pay a one-time FRP.

Data published by the Maharashtra Sugar Commissioner’s office shows that 168 sugar mills in the State started their crushing season by December 15, 2020 and had paid half of the FRP. In 2019, only 22 per cent FRP was paid during the same period.

This year, 48 mills had paid 100 per cent of the FRP, while 98 have paid 60 per cent or less. Sugar mills in Maharashtra had paid 97 per cent FRP to farmers in the last crushing season. Mills paid an FRP of Rs 13,149.56 crore, while dues worth Rs 356.96 crore are pending this season.

The Swabhimani Shetkari Sanghatana has alleged that many mills, especially in South Maharashtra, have not kept their promise to pay a one-time FRP.

Sugar mill owners say that pending sugar stock, a delay in the government’s export policy announcement and export subsidy have made many mills pay a one-time FRP.

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